ALBANY - It was a taxing day in Albany Tuesday.

Senate Republicans called for using much of the federal stimulus bailout under debate in Washington to avoid proposed state tax and fee increases they estimate would cost an average New York family about $3,300 a year - a figure one Republican economist said is exaggerated.

Meanwhile, some Senate Democrats said what New York needs to protect its schools is more taxes - specifically a rewriting of the income tax brackets so New Yorkers earning over $250,000 a year pay more to avoid cuts to schools and hospitals.

Gov. David Paterson tried to slam the door on both.

“There's just an addiction to spending and any time there is a change, it is a prelude to an attempt to increase spending,” Paterson said, chiding the legislators.

The Democrat has a proposed a 2009-10 budget that would deal with a growing $13 billion deficit while reducing spending in most areas. He said the state must overcome years of overspending pushed by special interests representing workers in public schools and hospitals.

“We're trying to do what American households are doing: Save, save save,” Paterson said. “Everybody is trying to find a way that they can keep spending. If people think they can create a false economy here by raising taxes ... I am not going to support this.”

Sen. Eric Schneiderman of New York City was among a group of Democrats in the Senate majority to propose a bill that would set the income tax at 10.3 percent on New Yorkers in households with income over $250,000 a year.

That increase of 3.45 percentage points could take in $6 billion and avoid cuts strongly opposed by powerful unions representing teachers and other public workers.

“This bill would protect our schools and communities agencies against devastating cuts,” said Billy Easton, executive director of the Alliance for Quality Education, a school advocacy group.

But the bill might not even get out of the Senate.

“I am not a proponent of raising taxes to close the budget gap until all other options have been explored,” said Senate Majority Leader Malcolm Smith, a Queens Democrat.

Smith said his conference will continue to discuss the tax proposal as well as other means of revenue generation. “However, to truly revive the faltering economy, we must find a way to create good-paying jobs which will allow everyday New Yorkers to support their families while bringing money into the economy,” Smith said.

But Senate Republicans, now in the minority, say the federal stimulus package would best be used to eliminate Paterson's plans for dozens of tax and fee increases, worth more than $4 billion. The Republicans figure those increases would cost New York families about $3,300 a year.

Senate Republican Leader Dean Skelos called for Paterson to resubmit the 2009-10 budget proposal he sent the Legislature in mid-December, this time allowing expected federal stimulus money to wipe out the state tax and fee increases. Paterson on Tuesday refused.

“Skelos is absolutely right. For better or worse, the stimulus package will have a significant impact on both the state and local governments, especially New York City,” said E.J. McMahon, director of the fiscally conservative Empire Center for New York State Policy and former budget staffer for Republican Gov. George Pataki.

But McMahon said the Republicans' estimate of the cost of the fees and taxes is exaggerated unless there are very heavy smokers and drinkers in the family who have long commutes to work and kids paying a 14-percent higher tuition in public college.

McMahon said the effect for most families would be less than a third of Skelos' $3,300 estimate.

All of the proposals remain on the table as legislative leaders try to negotiate a budget deal by March 1. That would be a month earlier than usual, under Paterson's plan to save money by addressing deficits and overspending faster.

Paterson said $11.2 billion needs to be cut from the current budget of more than $120 billion. Once that's done, he said he'd like to eliminate some of his fee and tax increases that he agreed are unwelcome, but necessary.

“It's the tough reality,” he said.